Apparently the Hawaiian locals were sexually corrupting the U.S. servicemen in the early 1960s according to recently released FBI files which address the "homosexual situation."
A March 1, 1962 FBI report on "Crime Conditions In The Honolulu Division" reflects concern about "the number of cases involving service personnel relations with homosexuals in the Waikiki area." For example, the Marine Corps Air Station, Kaneohe, reported that "17 station personnel within the previous several month period had been investigated and admitted homosexual activities, both passive and active, with males encountered in the Waikiki area." The Hawaii Armed Services Police conducted an investigation of the service personnel involved, and "compiled a list of 176 males in the Waikiki area, not service personnel, who have been identified as homosexuals." Apparently they were a sneaky lot, and "the principal homosexuals frequently move their residences in the Waikiki area to escape police detection."
The "principal hangouts for homosexuals in the Honolulu area were reported as follows": Swiss Chalet, Kailua, Oahu; The Clouds and Little Dipper both at 124 Kapahulu Avenue, Waikiki; Wagon Wheel Restaurant, 27 Kalakaua Avenue, Waikiki; and Le Coq D'or, 1900 Kalakaua Avenue, Waikiki.
The Little Dipper was a bar "located on the street floor of the Park Surf hotel, Waikiki, while The Clouds is a restaurant bar located on the second floor." The Little Dipper, "in particular, is a gathering place for homosexuals of both sexes, as well as other vice characters."
A follow-up November 1962 FBI memo further identified the following gathering places for the homosexual group which had expanded to include between three and four hundred members: The Royal Lanai; Golden B Bar, on Kapiolani; The Glade on North Hotel Street, downtown Honolulu; The Chinatown Grill, downtown Honolulu; Happy Saimin Stand, North Hotel Street; A-1 Bakery, Beretania and Aala Lane; and Ledi's Hotel, above the Shanty Bar on Smith Street.
Some of the gay crowd were behind the prostitution rackets and drug culture according to the FBI's March 1962 report:
[Redacted], Waikiki – A jazz club catering to Negroes and vice characters. [Redacted] described as a known homosexual, is manager. [Redacted], is a suspected dope addict, as is the doorman, [redacted] and [redacted] who have been appearing as entertainers, are suspected Lesbians and conduct some prostitution activities on a limited scale. Waitress [redacted] and two others, names unknown, are also suspected prostitutes and dope addicts.
Honolulu [informant], on February 1, 1962, reported that [redacted] and [redacted] partners with a Chinese woman in operation of the [redacted] are both homosexuals. On February 23, 1962, [informant] reported that [redacted] is now appearing at "The Little Dipper" in Waikiki and [redacted] is appearing at the Beachwalk Inn.
According to the FBI all the gays on the islands alarmed the Hawaii State Commission on Children and Youth which "appointed a study committee to inquire into the homosexual situation as it might affect children and youth, and corrective steps which might be taken to avoid its development in youth."
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